What does it mean to pay a deductible?
When you purchased the contents insurance either the policy had a mandatory deductible level or you select a deductible level in order to lower your policy payments. The normal procedure: camera value ($2000 if policy providers agrees with that $ amount) minus your deductible level = amount policy provider will pay you. Example: $2000 value – $500 deductible = $1500 policy coverage paid to you. Just about any claim made on a policy can drive up the premium. I would call the provider and verify if your premium will go up.
The deductible is a clause in an insurance policy that exempts the insurance company from paying an initial specified amount in the event that the insured sustains a loss. In other words, it’s the amount you would have to pay. The amount depends on your insurance policy. A claim will not necessarily make your premiums go up.
Insurance only covers the depreciated VALUE of the item, not its purchase price. You buy a camera for $2000. In one year, its value may be down to $1600. With a $500 deductible, the insurance will pay you $1100, you cover the $500 deductible. The $400 loss in value is the value you received as you used the camera. The premium may go up as you file claims because you start to become a higher risk client due to several factors (carelessness, where you live, crime statistics, just about anything you can think of).
